Ottawa\'s Only Green Office Market Report: Green Viewpoint Q3-2010 In this quarter: • Greener Buildings = Lower Vacancy in Ottawa • Another Building Registers for LEED EB:OM • +1 Million SF of Green Inventory Added in Ottawa

1. VIEWPOINT
OTTAWA GREEN OFFICE MARKET REPORT | Q3 2010

2. GREEN VIEWPOINT
GREEN BUILDINGS = LOWER VACANCY
Various studies have shown that Green buildings have lower vacancy OVERALL VACANCY
rates than their non-Green, or “Brown”, competitors. Some Ottawa
8.0%
landlords believe that, while this may be true in other more diverse cities
7.5%
with a more advanced Green building market, Greening your building
would have little impact on vacancy due to Ottawa‟s tenant mix and the 7.0%
Vacancy Rate
traditionally low and stable vacancy rates. However, when comparing 6.5%
vacancy over the past four quarters, it turns out that this is a false
6.0%
assumption. Since Q1-2010, Green vacancy has trended below that of
5.5%
the Brown market, and furthermore, the Brown market has begun a
5.0%
steady climb upwards while the Green market has been heading in the
Q4-09 Q1-10 Q2-10 Q3-10
opposite direction. Overall vacancy in Ottawa‟s Green market, which
Green Market Brown Market
includes sublet space, is currently 5.6% in Q3, down from 6.3% Q2, while
vacancy in the Brown market is up to 7.3% in Q3 from 6.8% in Q2. When
DIRECT VACANCY
looking at direct vacancy, with sublet space removed, the Green market
vacancy has dropped to 3.7% in Q3 from 4.7% in Q2, while the Brown 7.5%
7.0%
market vacancy has risen to 5.8% in Q3 from 5.3% in Q2.
6.5%
“This has been one of the missing pieces of the puzzle in Ottawa. We 6.0%
Vacancy Rate
can now definitively demonstrate that Greening your building will 5.5%
5.0%
translate into a better bottom line for the landlord and a safer, more
4.5%
stable investment for investors.” according to James McNeil, Cushman &
4.0%
Wakefield Ottawa‟s Green Real Estate Practice Lead. “Furthermore, we 3.5%
anticipate that, as more buildings switch categories from Brown to Green 3.0%
with either BOMA BESt or LEED designations, we will see even greater Q4-09 Q1-10 Q2-10 Q3-10
disparity in this respect. ” Green Market Brown Market
GREEN HIGHLIGHTS Q2 2010
SIGNIFICANT Q3-2010 GREEN LEASE TRANSACTIONS
Building LEVEL TENANT sf
1430 Blair Place BOMA BESt 2 Rogers Communications (Renewal) 53,677
333 Preston Street BOMA BESt 2 Sun Life Financial 27,000
1525 Carling Ave BOMA BESt 3 Investors Group (Renewal) 9,735
Cushman & Wakefield Ottawa
99 Bank St. Suite 700
Ottawa, Ontario, K1P 6B9
T: 613.236.7777
GREEN VIEWPOINT I Q3 2010
F: 613.236.5958

3. GREEN MARKET TRENDS
OTTAWA GREEN REAL ESTATE MARKET
OVERVIEW GREEN VIEWPOINT
As mentioned, vacancy in the Green market continues to buck the trend of the
Brown market. On a direct basis there is a 2.1% spread between the Green and “The strength of the Green market continues
Brown markets, when taking the sublet market into account, the spread is to surprise us. It seems that every quarter
something is happening that makes you stand
reduced to 1.7%.
back and say „Wow‟. The speed at which both
Green leasing activity continues to be strong overall, with 91,773 square feet (sf) the landlord and tenant communities are
of transactions taking place in Q3-2010 and a year-to-date total of 333,748 sf in buying into it is really exciting. There is no
2010. The Q3-2010 activity alone represents approximately 91% of what took longer any debate. Ottawa is definitely in the
midst of a Green Shift.”
place in all of 2009. The majority of this activity (81,888 sf) took place in BOMA
-Scott Brooker, Founding Member
BESt 2 buildings, where the greatest vacancy resides. Overall vacancy in the C&W Ottawa Green Real Estate Practice Group
BOMA BESt 2 category dropped from 9% in Q2 to 6.1% in Q3.
GREEN LEASING ACTIVITY
OUTLOOK
We anticipate leasing activity within the Green market to remain stable into Q4. 160000
This should pick up in Q1-2011 as we expect more Greening of existing product 140000
resulting in increased options for tenants seeking to achieve their sustainability 120000
objectives. 100000
Ft.
Sq.sf
80000
Joining the ranks of Sun Life Financial Centre, Place DeVille, and the Jean
60000
Edmonds Towers, the Standard Life Centre located at 275 Slater Street has also
40000
registered for LEED EB:OM, which will bring another 226,966 sf of Green office
20000
space to the market upon its certification.
0
We expect the number of Green buildings to steadily increase into the future. Q4 2009 Q1 2010 Q2 2010 Q3 2010
OTTAWA GREEN MARKET STATISTICS – Q3 2010
Q2
Overall Direct Leasing
No. of Inventory Vacancy Vacancy Activity Average Asking
Certification Level Buildings (sf) Rate Rate (sf) Net Rental Rate Gross Rental Rate
LEED Gold† 1 355,000 8.3% 8.3% 2,200 $26.00 $44.75
LEED Silver† 1 104,000 0% 0% 0 - -
LEED Certified 1 150,000 30.7% 0% 0 - $25.00
BESt 4 1 152,918 0% 0% 3,500 $26.00 $46.51
BESt 3 16 3,447,549 4.1% 2.6% 7,685 $22.29 $43.25
BESt 2 24 3,407,523 6.1% 4.8% 81,888 $11.69 $28.54
Total Green
44 7,616,990 5.6% 3.7% 91,773 $18.74 $41.56
Market
†Pending certification
Cushman & Wakefield Ottawa
99 Bank St. Suite 700
Ottawa, Ontario, K1P 6B9
T: 613.236.7777
F: 613.236.5958 GREEN VIEWPOINT I Q3 2010

4. TEAM PROFILE ABOUT CUSHMAN & WAKEFIELD
Cushman & Wakefield was founded in 1917.
James McNeil
Today the firm has 231 offices throughout the globe in 58
Associate Vice President*
Green Real Estate Practice Lead countries. C&W employs 13,000 talented professionals who
Tel: 613-780-1567 create, optimize, and protect value for clients in every region
jmcneil@cwottawa.com
of the world. We assist clients in every stage of the real
estate process, representing them in buying, selling,
James is President of the Ottawa Chapter Canada
Green Building Council and a Director of the Ottawa financing, leasing, managing, valuing assets, providing
Chamber of Commerce Environment Committee. strategic planning and research, portfolio analysis, site
James is uniquely positioned to align your real
estate with your business objectives of creating a selection, and space location, among other advisory services.
sustainable workplace. James has received the
Leadership in Business Award from Earth Day
Ottawa for his commitment to the environment and
ABOUT THE OTTAWA GREEN
was nominated as Corporate Citizen of the Year by REAL ESTATE PRACTICE GROUP
the Kanata Chamber of Commerce. He has
lectured on leasing and market-related topics to
industry stakeholders. James holds the designation Cushman & Wakefield Ottawa‟s Green Real Estate Practice
of Real Property Administrator (RPA) and is a LEED Group works with organizations who have made a
Accredited Professional (LEED AP).
commitment to sustainable business operations. We assist
them in navigating Ottawa‟s commercial real estate landscape
Scott Brooker to find workplace solutions that align with their environmental
Sales Representative commitments and contribute to sustainable bottom lines.
Green Real Estate Practice Group
Tel: 613-780-1582 Our team provides corporate tenants and building owners with
sbrooker@cwottawa.com
the expertise to understand and evaluate the benefits and cost
savings of buildings designed with sustainable high
Scott sits on the Canmet Energy Policy Advisory
Committee for the Development of Methodologies performance design features.
and Tools for Sustainability Reporting in the
Commercial & Institutional Buildings Sector and the Our value proposition is our ability to assist organizations in
CaGBC-ORC Existing Buildings Committee. He
matching real estate solutions to their quest to go green.
holds a Bachelor of Commerce Degree in
International Business from Dalhousie University &
the Copenhagen *School of Business School. He is
focused on driving sustainable value for his clients.
As a founding member of the Cushman & Wakefield CONTACTS
Ottawa Green Real Estate Practice Group he
provides clients with sustainable real estate
solutions that create value for their overall Cushman & Wakefield Ottawa
operations. 99 Bank St. Suite 700
Ottawa, Ontario, K1P 6B9
Brokerage, Independently Owned and Operated
LinkedIn Group:
James McNeil Scott Brooker
OTTAWA GREEN BUILDINGS AND Associate Vice President* Sales Representative
SUSTAINABLE WORKPLACES Green Real Estate Practice Lead Green Real Estate Practice Group
Tel: 613-780-1567 Tel: 613-780-1582
Twitter: jmcneil@cwottawa.com sbrooker@cwottawa.com
http://www.twitter.com/CWOGreen *Sales Representative
Cushman & Wakefield Ottawa is a
proud member of the Canada Green
Building Council